Is It Wise To Hold More Than One Crypto Currency?
As a tax accountant, I get swamped with offers for mlms , traditional businesses, and investments. Yes, the investment sector includes crypto currency. Bit coin has passed along and everybody that pitches me says they are the next bit coin and that I should jump on their currency and only theirs.
I have a $160 investment in one coin that is currently sitting at about $350. Not bad for less than a year. One of my clients has put in $100,000 and that is now worth $1 million, in a year.
What is interesting to me is that once a crypto currency is done "mining" coins, then it is over as far as getting in on the ground floor. In addition, what if their currency gets liquidated and it is worthless. I remember that there was a scare that the owner of bit coin was going to cash out his/her coins and then the bit coin would crash.
With those two points, does it make sense to own more than one crypto currency? What happens when the dollar crashes and you only have bit coin. I saw in Las Vegas that a casino out there accepts it. But bit coin is not accepted everywhere.
I was recently introduced to YO coin as well. Maybe I should get in on all of them? What do the Steemit folks feel about this? I would be interested to hear.
Thanks in advance
Steve
Try to invest in few the most promising coins. I would recommend ETH, Steem, Lisk, Emercoin, Next, Nem (and possibly Waves as it looks promising).
Bitcoin seems unlikely to rise for a while Same as Litecoin (LTC also offers little of technological properties)
Thanks for that! Good advice
You are welcome :-)
There are only a handful of cryptocurrencies that are worth owning, mainly because they have their own unique decentralized usefulness. IMO, the vast majority of them are just pump and dump coins and number in the hundreds. It's just like choosing a company to buy stock in, you gotta do the due diligence...what is it's potential and who is behind the business?
Diversification is key and just like in the traditional finance world, I believe it holds true in crypto as well. Spread the risk, for example I hold seven assets at the moment, two of which are non-crypto: Physical Gold, Silver, Ethereum, Lisk, Steem, Waves and of course bitcoin. I believe all of those have unique contributions to the crypto universe and should go up strongly during some sort of financial calamity, especially gold and silver.
I know a lot of people get emotionally tied to their crypto which leads to holders of one coin to bash the holders of another, like BTC and ETH lovers frequently do. I've alway wondered, why not hold both?
So yes, I do believe it makes sense to own more than one cryptocurrency.
Thanks for that. Good advice. Great reply
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